As the manager of a Papa Sam’s Corporation restaurant, you must deal with a variety of business transactions.

Requirement

1. Give an example of a transaction that has each of the following effects on the accounting equation:

a. Increase one asset and decrease another asset.

b. Decrease an asset and decrease stockholders’ equity.

c. Decrease an asset and decrease a liability.

d. Increase an asset and increase stockholders’ equity.

e. Increase an asset and increase a liability.